Tuesday, December 7, 2010

Airlines Fare

In the Times of India I wrote about the increase in airfares like this.

In my opinion government's concern in the fare hike by private airlines is misplaced. First of all this hardly concerns the general public. Even now those travelling by plane is just a small percentage. Most of the people still depend upon what Shashi Tharoor would have described as the 'cattle class' mode of transport. Either by rail or by road. Even those who travel by air most of the people are employees of private companies for whom the fare is paid by the concerned companies. This fare increase has affected only a minuscule population who pays from their pockets. And they can afford it. Just because nobody wants to part with money they are crying foul. So government neither need not pull any airlines out of debt nor ask them to lower their fare. Let them charge as much as the market will bear. After all our set up is sliding towards capitalism and market economy. We have our socialistic roots and have welfare measures meant for those who needs it. This does not falls under that category. Once the government starts interferering in the price structure of private airlines then then the government will have a moral responsibility to help it in hard times. For that the common man's tax money will have to be used. Why the aam aadmi pay for the luxury which he never enjoys. In US the airlines change the fare according to the demand and nobody cries foul. Let it be here also . It is purely private affair and let them look after themselves. If a builder charges heavens for a f

Read more: Airlines to give fares by route in advance - The Times of India http://timesofindia.indiatimes.com/business/india-business/Airlines-to-give-fares-by-route-in-advance/articleshow/7056280.cms#ixzz17PphqQkv
 
Many have commented that my view is preposterous. I stick to my view. I once again assert that air travel is for the few in the upper strata. As I told that once the government starts interfering it will have to do so when they go bankrupt also. Government will have to come to its rescue with the taxpayers money which I say is not proper. I am giving the same view what Mr.Jairam Ramesh told of the SUVs using diesel. Diesel price is kept low by subsidy. It is meant to be used in tractor for farming. The SUV owner can very well afford petrol at market price. When a builder builds apartments he charges as he wants that is whatever maximum he can get. The prize is calculated as to what the market can bear. Does anyone cry that the price is too high and there should be a capping? Certainly not. Those who can afford it will buy. Those who cannot will go in search of something else they can afford. Like that if airlines raises the fares go to other cheaper mode of transport. If they do not get passengers if they raise it so much naturally they will have to reduce it. It will have to come down automatically. With so much investment they cannot afford to keep it grounded without any returns. If the fares are exorbitantly high stop buying the tickets. In this connection in another paper one has commented that the airfare fare from Baroda to Bombay has gone to 10k and was lamenting. The Western Railway runs many trains between Baroda and Bombay. The faster one takes less than six hours. If you consider the time you take to go to the airport and your waiting time there and after arriving at Santa Cruz and the time taken to your actual destination by rail you don't lose much. Here in Bangalore after the airport has been shifted all are telling for short distance flights say to Madras trains are better. People do not want to do that.  Then let them pay. If at a later date government spends any money on the private airlines it will be nothing but criminal

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